USD/CHF rises above 200-DMA as USD gathers strength
The USD/CHF pair gained some bullish momentum during the first half of the NA session and rose above the significant 200-DMA. After refreshing its session high at 0.9990, the pair is trading at 0.9985, up 0.2% on the day.
The pair's upsurge seems to be fueled by the greenback as the US Dollar Index is gaining 0.3% on the day, at 99.70. On Tuesday, the index dropped to a new three-week low and has been recovering those losses on Wednesday. However, today's movement is seen as a technical consolidation as it hasn't been backed by a positive data.
Earlier today, a report on the Financial Times' Wednesday's edition revealed that Treasury Secretary Steven Mnuchin argued that Trump's remarks to the WSJ were not an attempt to talk down the dollar. Moreover, the U.S. T-bond yield is also helping out the greenback find some demand. The 10-year yield is up 1.7% on the day, at 2.215%.
The market's focus now turns to the speech by Boston Fed E.Rosengren (2019 voter, hawkish) and the Fed’s Beige Book.
Technical outlook
The immediate support for the pair could be seen at 0.9975 (200-DMA) before 0.9920 (Mar. 21 low) and 0.9900 (psychological level). To the upside, resistances are aligned at 1.0000 (psychological level) ahead of 1.0050 (100-DMA) and 1.0100 (psychological level/Apr. 10 high).
Author
Eren Sengezer
FXStreet
As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.
